Earls Park, New Homes in Gloucester
Help to Buy Gloucester

Help to Buy for New Homes in Gloucester

Help to Buy: Equity Loan is a Government initiative to assist people purchasing new homes in Gloucester and the whole of the UK who can afford mortgage payments but are struggling to raise a deposit.

Many people in Gloucester and throughout the UK are unable to purchase a home or move house because of the large deposits required in today’s difficult mortgage market.

Help to Buy: Equity Loan scheme is a government scheme which could make getting on to the housing ladder more accessible.  It helps first time buyers purchase a new home with as little as 5% deposit.

If you are a first time buyer and looking to purchase a property in Gloucester up to the value of £349,000 then Help to Buy: Equity Loan could be a good option for you!

The government has also announced at Budget 2021 a mortgage guarantee scheme which will increase the supply of 5% deposit mortgages for credit worthy households.  This scheme is available across the UK on properties with a purchase price of £600,000 or less, where a borrower has a deposit of 5%.

The mortgage guarantee scheme is explained in more detail here.

New Homes at Earls Park, Gloucester

What is Help to Buy: Equity Loan (2021-2023)?

Help to Buy: Equity Loan is only available for first time buyers purchasing new build homes.

Under the scheme

  • Government provides equity loan of 20%
  • You arrange a mortgage for 75%
  • Meaning your deposit is 5%

You won’t be charged loan fees or interest on the 20% loan for the first five years of owning your home, but interest will be payable on it from year 6.

If the home in the example above sold for £210,000, you’d get £168,000 (80%, from you mortgage and the cash deposit) and you’d pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money. Many new homes developers advertise plots that are eligible for Help to Buy: Equity Loan in Gloucester. Here is a list of the current new homes for sale in Gloucester.


What is the last date you can reserve a new homes using Help to Buy: Equity Loan?

The last date homebuyers can reserve homes an apply for the Help to Buy: Equity Loan is 31st October 2022.  This should allow enough time for homebuyers to legally buy their homes before the scheme ends on 31 March 2023.

Am I eligible for Help to Buy: Equity Loan (2021 – 2023)?

To find out if you are eligible you simply need to contact a mortgage advisor or mortgage lender that is participating in the scheme.  However, use the quick checklist below to see if you could be eligible for the scheme:

  • Buyers need a minimum of 5% deposit
  • Available on new build property in Gloucester up to the value of £349,000
  • You and anyone you’re buying a home with must:
    • not own a a home or residential land now or in the past in the Uk or abroad.
    • not have any form of sharia mortgage finance.
  • Available for properties in the UK
  • Borrowing from a participating mortgage lender.

Before you get started, make sure you have funds to pay for:

  • A reservation fee to reserve your home (up to £500).
  • A 5% deposit on exchange of contracts.
  • Other fees on completion (stamp duty, legal fees, mortgage fees).

Here’s a full guide on the Help to Buy: Equity Loan (2021-2023)

What has happened to the previous Help to Buy scheme?

Applications for Help to Buy: Equity Loan (2013-2021) ended on 15th December 2020.

However the completion deadline for those purchasing with the scheme has been extended until May 31st 2021.  The extension has been made to help with problems caused by the current coronavirus pandemic.

If you have any questions regarding Help to Buy or would like to find out about participating developments then please Michael Tuck New Homes in Gloucester

Terms and Conditions for Help to Buy: Equity Loan (2021-2023)

Eligible homebuyers can borrow 5% to 20% (40% in London) of the market value of a newly built home. Regional property price limits will apply. The equity loan is interest free for 5 years; monthly interest payments start at 1.75% and rise each year in April by the Consumer Price Index (CPI) plus 2%. Pay a £1 monthly management fee from the start. Repay your equity loan at the end of your mortgage or equity loan term, when you sell your home or any time before. The lender, Homes England, secures the equity loan as a second charge on your home. Help to Buy is subject to eligibility, terms and conditions: www.OwnYourHome.gov.uk

Your home may be repossessed if you do not keep up repayments on your repayment mortgage, equity loan or other loans secured against it.


Want to talk to us about the Help to Buy Scheme?

Why not speak to our friendly New Homes team who can tell you how the scheme works and which new homes developments in Gloucester are registered with Help to Buy!
Land and New Homes
01452 726443
Help to Buy

*Eligible applicants will be offered an equity loan up to a maximum of 20% of the purchase price (based on the open market value). 

Applicants are required to fund at least 80% of the purchase price by means of a conventional mortgage, savings and any deposit where required.  For the first five years there is no fixed fee charged on the equity component. 

At the start of year six a fee of 1.75% is payable on the equity loan, which rises annually by RPI inflation plus 1%. 

The equity loan is provided by the HCA and held as a second charge.  Terms and conditions apply and full details will be provided on request. 

This offer is subject to status and only available on selected properties in England only.  It is not offered with any other promotion. 


Emma Haggett, Michael Tuck New Homes, Gloucester

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